New South Wales

2008 No 605

Police Superannuation Amendment (Family Law) Regulation 2008under the

Police Regulation (Superannuation) Act 1906

Published in Gazette No 158 of 19 December 2008, page 12359 Page 1

Her Excellency the Governor, with the advice of the Executive Council, has madethe following Regulation under the Police Regulation (Superannuation) Act 1906.

JOSEPH TRIPODI, M.P.,Minister for Finance

Explanatory noteThe object of this Regulation is to amend the Police Superannuation Regulation 2005 toprovide for the following matters relating to family law superannuation payments in respectof spouses or former spouses of contributors to the Police Superannuation Scheme:(a) the manner in which the superannuation interest of a contributor is to be valued for

family law purposes,(b) the notification of contributors, and spouses or former spouses (non-contributor

spouses), of family law superannuation entitlements resulting from agreements ororders under Commonwealth family law,

(c) the nomination by non-contributor spouses as to where family law superannuationentitlements are to be paid,

(d) the reduction of benefits payable to contributors whose non-contributor spouses havereceived family law superannuation entitlements,

(e) the commutation of pensions payable to former contributors for the purposes of thepayment to non-contributor spouses of family law superannuation entitlements,

(f) provisions of a transitional nature.This Regulation is made under the Police Regulation (Superannuation) Act 1906, includingsections 14P–14R and 24 (the general regulation-making power) and clause 1 of Schedule 6to that Act.

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Police Superannuation Amendment (Family Law) Regulation 2008Clause 1

Police Superannuation Amendment (Family Law) Regulation 2008under the

Police Regulation (Superannuation) Act 1906

2008 No 605

1 Name of RegulationThis Regulation is the Police Superannuation Amendment (FamilyLaw) Regulation 2008.

2 CommencementThis Regulation commences on 19 December 2008.

3 Amendment of Police Superannuation Regulation 2005The Police Superannuation Regulation 2005 is amended as set out inSchedule 1.

Police Superannuation Amendment (Family Law) Regulation 2008

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Schedule 1 Amendment(Clause 3)

Part 3AInsert after Part 3:

Part 3A Family law provisions19A Interpretation

(1) In this Part:approved valuation method means:(a) in relation to benefits under the Police Superannuation

Scheme—Part 5 of Schedule 2 to the Family Law(Superannuation) (Methods and Factors for ValuingParticular Superannuation Interests) Approval 2003 madeunder the Family Law (Superannuation) Regulations 2001of the Commonwealth, or

(b) in relation to benefits under the Police AssociationSuperannuation Scheme—Part 6 of that Schedule.

contributor includes a former contributor.deferred benefit means a benefit deferred under section 9B of theAct (including that section as applied by section 3 of the PoliceAssociation Employees (Superannuation) Act 1969).

(2) Words and expressions used in this Part have the same meaningsas they have in Part 4A of the Act.

19B Valuation of superannuation interests(1) This clause applies for the purposes of Part 4A of the Act and the

family law superannuation legislation.(2) The value of a superannuation interest of a contributor (other than

of a deferred benefit) is to be determined in accordance with theapproved valuation method.

(3) The value of a superannuation interest relating to a deferredbenefit is to be determined in accordance with Part 5 ofSchedule 2 to the Family Law (Superannuation) Regulations2001 of the Commonwealth.

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19C Notice to contributor and non-contributor spouse when entitlement becomes payable(1) If a superannuation interest of a contributor becomes subject to a

payment split, STC must notify the contributor and thenon-contributor spouse in relation to the interest, in writing, thatthe interest is subject to a payment split.

(2) The notice must be given:(a) in the case of a payment split under a superannuation

agreement or flag lifting agreement—within 28 days afterthe operative time for the payment split, or

(b) in the case of a payment split under a splitting order—within 28 days after the operative time for the paymentsplit or after STC receives a copy of the order (whicheveris the later).

(3) The notice given to the contributor must:(a) specify the estimated amount of the entitlement of the

non-contributor spouse and how it was calculated, and(b) specify the period within which payment of that

entitlement is to be made, and(c) specify the estimated effect of the payment on the

entitlement of the contributor under the PoliceSuperannuation Scheme.

(4) The notice given to the non-contributor spouse must:(a) specify the estimated amount of the entitlement of the

non-contributor spouse and how it was calculated, and(b) specify the circumstances in which the amount may be

paid or released to the non-contributor spouse or must betransferred or rolled over to a complying superannuationfund or an RSA, and

(c) require the non-contributor spouse to nominate, within28 days, whether the non-contributor spouse meets acircumstance for payment or release or, if not, to nominatea complying superannuation fund or an RSA to which theamount is to be paid, and

(d) specify that the amount will be credited to the First StateSuperannuation Fund if the nomination is not made withinthat period.

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(5) For the purposes of section 14P (5) (b) of the Act, the prescribedperiod within which a nomination must be made by anon-contributor spouse is 28 days after the giving of the noticeunder this clause.

(6) STC is not required to give the notice if the superannuationinterest ceases to be subject to a payment split within the noticeperiod.

19D Payment of family law superannuation entitlements(1) If the amount of a family law superannuation entitlement is to be

paid or released to a non-contributor spouse, the amount must bepaid or released by STC when, or as soon as practicable after, anomination is received under clause 19C (4).

(2) If the amount of a family law superannuation entitlement is to betransferred or rolled over, the amount must be transferred orrolled over:(a) to a complying superannuation fund or RSA nominated

under this Part within 90 days of the nomination beingmade, or

(b) if no nomination is made within the period prescribed bythis Part, to the First State Superannuation Fund within90 days of the end of the period.

(3) Nothing in subclause (2) (b) prevents STC from transferring orrolling over the amount of a family law superannuationentitlement to a complying superannuation fund or RSA if anomination is made by a non-contributor spouse after the end ofthe period referred to in clause 19C (5).

(4) STC must give to the contributor, within 28 days after an amountof family law superannuation entitlement is paid or released ortransferred or rolled over, a notice in writing stating:(a) that the amount has been paid, released, transferred or

rolled over, and(b) the amount paid, released, transferred or rolled over and

how it was calculated, and(c) the estimated amount of adjustment made to the benefit of

the contributor.(5) STC must give to the non-contributor spouse, within 28 days

after an amount of family law superannuation entitlement is paidor released or transferred or rolled over, a notice in writingstating:

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(a) that the amount has been paid, released, transferred orrolled over, and

(b) the amount paid, released, transferred or rolled over andhow it was calculated, and

(c) the name and contact details of the superannuation fund orRSA, if any, to which the amount was transferred or rolledover.Note. Under regulation 59 of the Family Law (Superannuation)Regulations 2001 of the Commonwealth, STC may chargereasonable fees in respect of payment splits, payment flags, flaglifting and other related matters. Such fees are payable in equalparts by the contributor and the non-contributor spouse.

19E Reduction of benefits of contributors(1) This clause applies if the amount of the family law

superannuation entitlement of a non-contributor spouse is paid,released, transferred or rolled over under Part 4A of the Act (afamily law superannuation payment is made).

(2) A benefit payable to the contributor (including a benefittransferred under the Act), other than a deferred benefit, is to bereduced in accordance with this clause at the time it is paid to thecontributor or transferred.

(3) A deferred benefit of the contributor is to be reduced inaccordance with this clause:(a) if the election to make provision for the benefit was made

before the superannuation entitlement of thenon-contributor spouse was paid, released, transferred orrolled over, at the time the entitlement is paid, released,transferred or rolled over, or

(b) in any other case, when the election to make provision forthe benefit takes effect.

(4) The amount of the reduced benefit is to be calculated as follows:

where:r is the amount of the reduced benefit.v is the amount of the benefit that would have been payable to thecontributor if the family law superannuation payment had notbeen made.A is the ratio of the amount paid in respect of the non-contributorspouse to the value of the benefit of the contributor when thepayment split occurred.

r v 1 A C×–( )×=

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C is the ratio of the benefit accrual when the payment splitoccurred to the benefit accrual when the benefit is payable ordeferred or transferred (as the case requires).

(5) If family law superannuation payments are made in respect ofmore than one spouse of the contributor, the amount of thereduced benefit (other than a deferred benefit) is to be calculatedby applying to the amount of the benefit payable (as referred toin subclause (4)) the reduction factor for each family lawsuperannuation payment. Each reduction factor is to becalculated as follows:

where:f is the reduction factor.A and C have the same meanings as in subclause (4).

(6) In this clause:benefit accrual at any point in time means the benefit accrual asat that time as determined by STC on actuarial advice.value of a benefit means the value of the benefit as determinedby STC on actuarial advice.

19F Effect of benefit reductions on superannuation allowances and other benefits(1) STC may commute part of a superannuation allowance payable

to a contributor for the purposes of payment of the family lawsuperannuation entitlement of a non-contributor spouse and theamount of the superannuation allowance is to be reduced inaccordance with clause 19E.

(2) Any benefit payable under the Act to a person on the death of acontributor whose benefit has been, or is to be, reduced as a resultof a family law superannuation payment is to be based on theamount of the benefit as so reduced.

(3) Nothing in this Part affects any other right of a contributor orother person to commute a superannuation allowance or part of asuperannuation allowance under the Act.

19G Transitional provisions relating to existing family law superannuation entitlements(1) This clause applies to a family law superannuation entitlement

that arose under a superannuation agreement, flag liftingagreement or splitting order in force before the commencementof this Part (an existing entitlement).

f 1 A C×–=

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(2) If an existing entitlement consists of an interest that is not able tobe calculated until a benefit becomes payable to a contributor orother person, it is taken to be operative for the purposes of section14P of the Act when the benefit becomes so payable.

(3) For the purposes of the application of clause 19C to an existingentitlement, a nomination under clause 19C must be given by anon-contributor spouse within 3 months of being given noticeunder that clause.

19H Transitional provision relating to all family law superannuation entitlements

Clause 19C (2) does not apply in respect of a family lawsuperannuation entitlement until 6 months after thecommencement of this Part.

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BY AUTHORITY